If they have a solid income to expense ratio and emergency fund, I would say that it would probably be pretty safe to rent to them, but if you're considering renting to a broke friend with bad money habits just because they're a friend, then you're GOING to regret it. 

I understand that it would be vital that him and I work through under what conditions I would be able to enforce that he does not manage the property any more and a property management company comes in so that I wouldn't be stuck in a situation where he fails to manage the property and I'm not able to bring in a proper management company - I don't think this will happen, but it's something we will work through it we proceed.Again, thank you all for your time.

Though it may be relatively simple to earn short-lived profits, developing a long-term real estate investing business requires skill, effort, and these 10 important habits.1.

You need to be organized, structured, something set, scheduled, it's about creating a habit, a healthy habit, that you hold to a schedule. 

Only need 3.5% into the total amount.If you have to go VA, look for fixedr-upper that is habitable and only needs cosmetic repairs.

So I say run your worst-case scenario to know the real picture once shyt hits someone's fan and you don't end up shocking your current cashflow habit.

In the regional market, it is vital to have a true understanding of the local geography.

It sounds like you're on the right path so whether you get 3% at a bank or 5-6% in some other form, just start stashing that cash and build good habits. 

Is the property you seek to purchase turnkey or will it require rehab - and if the latter, would it be considered habitable in its current condition?

Just a reminder though, before you start your out of state investments, it is best to make sure that you have proper systems in place.You can learn more from David Green's The Core 4 Members Vital to a Profitable Long-Distance Real Estate Investing Team this link here: https://www.biggerpockets.com/...